A quick look at JTI (13.5.2010)

A quick look at JTI (13.5.2010)
http://spreadsheets.google.com/pub?key=tOLRl0VcERSZUqz0FX99q3g&output=html

Prospects for This Financial Year
JT International Berhad expects the challenging operating environment to continue for the remainder of the year. The key challenge that will have a significant impact on its business will be the impending prohibition on the sales of cigarette packs containing less than 20 sticks that will be fully effective on June 1, 2010.

Illicit cigarettes, which now account for one out of three cigarette packs in the market, continue to present a major challenge to the legal tobacco industry. As the growth of the illicit cigarette trade is fuelled by significant excise tax increases implemented over the years, JT International Berhad is appreciative of the Government’s cognisance of this issue, which culminated in a more moderate excise tax increase in 2009. Moving forward, JT International Berhad hopes that moderate tax increases will continue to be implemented to curb the growth of the illicit cigarettes trade. JT International Berhad is also encouraged by the increased and integrated activities of the various Government enforcement agencies to combat this alarming issue. In addition to broadening their enforcement scope to the retail level, the Government agencies are now detaining and charging illicit cigarette traders in court as an effective deterrent measure. JT International Berhad will continue to cooperate fully with the authorities in the ongoing fight against the illicit cigarette trade and is hopeful that moderate increases in excise taxes, together with the current enforcement efforts by the Government agencies will curb the growth of the illicit cigarette trade.

Amidst these challenges, JT International Berhad is committed to maintain its competitiveness and aims to deliver a satisfactory overall performance for the current financial year through continued effective investment behind its global flagship brands - Winston, Mild Seven and Camel.